Equity-Based Compensation

3 Months Ended

Mar. 31, 2020

Share-based Payment Arrangement [Abstract]

Equity-Based Compensation

The following table summarizes the Partnership’s equity-based compensation expense related to performance units and phantom units for the Partnership’s employees and independent directors.

	Three Months Ended March 31,
	2020		2019
	(In millions)
Performance units	$	2	$	3
Phantom units	2		1
Total compensation expense	$	4	$	4

The following table presents the assumptions related to the performance share units granted in 2020.

	2020
Number of units granted	933,738
Fair value of units granted	$	7.00
Expected distribution yield	12.27		%
Expected price volatility	27.70		%
Risk-free interest rate	0.85		%
Expected life of units (in years)	3

The following table presents the number of phantom units granted and the grant date fair value related to the phantom units granted in 2020.

	2020
Phantom Units granted	941,732
Fair value of phantom units granted	$6.48 - $10.13

Units Outstanding

A summary of the activity for the Partnership’s performance units and phantom units applicable to the Partnership’s employees at March 31, 2020 and changes during 2020 are shown in the following table.

	Performance Units					Phantom Units
	Number of Units			Weighted Average Grant-Date Fair Value, Per Unit		Number of Units			Weighted Average Grant-Date Fair Value, Per Unit
	(In millions, except unit data)
Units outstanding at December 31, 2019	1,393,329			$	19.04	1,392,560			$	14.65
Granted (1)	933,738			7.00		941,732			8.41
Vested (2)	(381,981		)	19.25		(347,287		)	16.10
Forfeited	(11,621		)	19.12		(10,611		)	14.81
Units outstanding at March 31, 2020	1,933,465			$	13.18	1,976,394			$	10.55
Aggregate intrinsic value of units outstanding at March 31, 2020	$	5				$	5

_____________________

(1) Performance units represents the target number of performance units granted. The actual number of performance units earned, if any, is dependent upon performance and may range from 0% to 200% of the target.

(2) Performance units vested as of March 31, 2020 include 376,292 units from the 2017 annual grant, which were approved by the Board of Directors in 2017 and, based on the level of achievement of a performance goal established by the Board of Directors over the performance period of January 1, 2017 through December 31, 2019, no performance units vested.

Unrecognized Compensation Cost

The following table summarizes the Partnership’s unrecognized compensation cost for its non-vested performance units and phantom units, and the weighted-average periods over which the compensation cost is expected to be recognized.

	March 31, 2020
	Unrecognized Compensation Cost (In millions)		Weighted Average Period for Recognition (In years)
Performance Units	$	16	2.18
Phantom Units	13		1.97
Total	$	29

As of March 31, 2020, there were 4,987,106 units available for issuance under the long-term incentive plan.